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What is the project net present value

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Reference no: EM132434082

A company is considering investing in a 4 year project which requires £3.1m of capital investment and has a residual value of £400,000. The project will also require an initial investment of £100,000 of working capital which will be released at the end of the project's life. The project is expected to generate £950,000 of net cash flows each year. Ignore taxation. What is the project's net present value (to the nearest £000) assuming the company's cost of capital is 8%?

Reference no: EM132434082

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